Saturday, May 29, 2010

Bailed Out Spanish Bank Was Controlled By Catholic Priest

Spanish bank CajaSur was managed by Catholic priest Santiago Gomez Sierra prior to its bailout.

The Economist reports that the bank in Cordoba was managed by the Roman Catholic Church, before it was taken over at a cost of €530 million by the Bank of Spain.

CajaSur was unwilling to merge with Unicaja, another Spanish savings bank, and instead succumbed to government intervention.

The failure of the merger is blamed on CajaSur's demands over jobs and wages.

CajaSur's bailout led to three separate bank merger events in Spain, the latest coming today when 6 banks moved to combine their assets for protection.